WORLD OIL PRICES (Oct 21-25, 2013 trading days)

Although oil prices seesawed over the week, averages were generally lower compared to previous week on reports of stabilized oil production in Libya and Middle East and indications of weak demand in the US and China. It was also supported by reports that the U.S. Federal Reserve would delay curbing its massive economic stimulus program until next year, which would help boost oil demand in the world’s largest consumer.

Oil futures traded higher in the early part of the week as traders await key data point out from the US and China but, oil prices fell again following the U.S. Energy Information Administration’s weekly report that U.S. crude oil inventories rose by 5.2 million barrels in the week ended Oct. 18. This was above expectations for an increase of 3 million barrels, which stoked concern that U.S. supply is too high while demand is weak.

Meanwhile, an official from Libya's National Oil Corp noted of stabilized output to around 600,000 barrels even as authorities struggle to end armed protests that cut shipments for months. Libyan oil exports had plunged by more than 70 per cent after protesters, including policemen and border guards, forced the terminals to shut over demands for back pay.

The oil market was also looking forward to the results of the negotiations between the United States and Iran, to see when and if sanctions might be lifted. Washington described their recent negotiations as the most serious and candid to date, and the parties have agreed to meet again in Geneva on Nov. 7-8.

As regards the oil products in Asia, Platts noted that gasoline cracks were under pressure because of sustained weakness in US benchmark gasoline prices. While regional sentiment remains subdued, traders said the market would likely find support from fresh demand emerging from Indonesia, in view of the ongoing maintenance shutdown in Balongan refinery. Meanwhile, market focus was on the Middle East, where Iraq's State Oil Marketing Organization is in negotiations to buy 2.43 million MT of 95 RON gasoline for 2014.

On the other hand, Asian gasoil/diesel market was seen supported by demand from Indonesia and Sri Lanka for November deliveries, though volumes sought were not as high as October. Cash differentials continued to inch up, with firm buying interest for FOB Singapore 500 ppm sulfur gasoil.

Overall, Dubai crude declined week-on-week by about fifty cents. MOPS gasoline and diesel decreased as well by more than a dollar.

FOREX: Peso per US dollar rate appreciated week-on-week by P0.01 to 43.12, from P43.13 in the previous week.

Other recommended reference sites:
(1) http://www.aip.com.au/pricing (2) http://www.med.govt.nz/ers/oil_pet/prices/prices.html

DOMESTIC OIL PRICES

Effective 27 October 2013, most of the oil companies implemented a decrease of P0.40/l for gasoline, P0.50/l for diesel and P0.45/l for kerosene.

Year-to-date net increase for gasoline and diesel stands now at P0.74/liter and P2.28/liter, respectively.

* RON 95

For more information, call the

Department of Energy:
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email: oilmonitor@doe.gov.ph
Website: http://www.doe.gov.ph